Mylan N.V.'s stock slumped 3% in morning trade Monday, after the drug maker said its board of directors unanimously rejected Teva Pharmaceutical's unsolicited buyout bid. Mylan said it not only believes the bid Teva made early last week, which would value Mylan at about $40 billion, did not meet any of the key criteria that would cause the company to depart from its current course. "After thorough consideration, Mylan's Board unanimously determined that Teva's proposal grossly undervalues Mylan, and would require Mylan's shareholders to accept what we believe are low-quality Teva shares in exchange for their high-quality Mylan shares in a transaction that lacks industrial logic and carries significant global antitrust risk," said Mylan Chief Executive Robert Coury. Teva's stock shed 1.1% in early trade. On Friday, Mylan's stock had closed at a record high after the company raised its bid for Perrigo Co. to about $33 billion to help fend off Teva's hostile buyout attempt.
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